Politics

22 November 2008

Fraser Nelson reviews the week in politics

While it is an exaggeration to say that Mr Osborne is fighting for his job, he will certainly be battling for his credibility when he responds to Mr Darling’s mini-Budget on Monday. He must deliver a fierce and wounding attack. If the Chancellor announces both tax and spending cuts, Mr Osborne will need to find clear ground to stake out. He hit a deep nerve when warning about a run on the pound last weekend — the perfect response to Mr Brown’s mantra-like claims that the economy is robust and well-prepared. There is a reason why sterling has been the 159th worst performer in the world’s currencies in the last year, and it has nothing to do with subprime American mortgages.

The shadow chancellor was simply stating the obvious, and this is what Mr Brown is trying so desperately to hide from. His preferred narrative — that he is personally saving a strong Britain from a global ‘contagion’ — is an elaborately constructed myth that simply cannot last the course. On Monday, he will doubtless unveil a package that will be presented as a radical remedy. Yet its failure will be obvious by Easter. This is why his best chance is to hold an election in the new year, before he is found out. For the second time, the PM is in position, ready for battle. And for the second time, Mr Cameron’s mission is to convince him that the Conservatives are ready, too.

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alastair harris

November 21st, 2008 1:35pm Report this comment

but surely a january 2009 election would be the biggest hypocracy of all? I thought he was supposed to be getting on with saving the planet? How does he square an election with that?

Paul

November 21st, 2008 1:42pm Report this comment

I think Fraser suggested it ; "needing 5 years to fix the problem" (para.). Reality is, of course, anything to cling onto power.

God help us all if this incompetent buffoon gets in again. Can you imagine the wreck he will make of the economy when all his short term kludges come due ?

Dave B

November 21st, 2008 2:13pm Report this comment

Labour can call an election whenever they like, they'll still lose it.

Daniel

November 21st, 2008 5:56pm Report this comment

Osborne's real problem is that he has lost the support of the City, which recognises that the current downturn is much more severe than previous recessions which have generally occurred in a context where the markets have lost confidence in a Government's ability to manage the public finances and control inflation. In these circumstances, orthodox (Thatcherite) economic policy works. But that's not the situation we face here. There are well grounded fears in the markets that some of the world's largest capitalist institutions, such as Citicorp, Ford and General Motors may not survive. It is a crisis of capitalism, not socialism. Against this background, the Tories' insistence that spending cuts are the answer borders on the lunatic. Yes, public finances do need to be saved, but first of all we need to save the economy. The Tories'ideological rejection of Keynesianism in the current crisis shows that their "brand" has, in fact, become contaminated again. Unfortunately Labour seem to be grasping the opportunities this provides in an entirely predictable manner.

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